Inflation reaches 11-year high in November

Macroeconomics

12 December 2007

China's consumer price index rose by 6.9% in November, an 11-year high, the Financial Times reported. It is believed that the increase, led primarily by the sharp rise of food prices, which jumped by 18.2% - and particularly by the cost of pork, which soared 56% from the previous year - will serve to strengthen Beijing's resolve to further policies to cool the economy in 2008. The news will also likely further delay the government, which heavily subsidizes oil and coal, from enacting plans for energy price reform.

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